Deutsche Telekom CEO Tim Hottges has revealed the telecom operator company’s growth strategies at its Capital Markets Day in Bonn, Gemany.
Deutsche Telekom expects annual growth of around 4 percent in both net revenue and service revenues through 2027. Adjusted EBITDA AL is set to grow by an average of 4 to 6 percent per year, Deutsche Telekom said.
Deutsche Telekom today said plans to grow its revenues by increasing market shares and through a portfolio including fixed-network substitution, 5G campus solutions, and network slicing.
“Our strategy has made us the undisputed number one in Europe. We have achieved or even exceeded nearly all of our targets and are now worth more than all our peers on our domestic continent combined. We will build on this position in the future, for example, by further intensifying the use of artificial intelligence,” Tim Hottges said.
Investments of the Deutsche Telekom Group (excluding United States) excluding expenses for mobile spectrum are expected to account for around 21 percent of service revenues in 2027.
Here are five key strategies of Deutsche Telekom aimed at driving growth and enhancing its business model through 2027:
#1 Accelerating Digital Transformation and AI Integration
Deutsche Telekom plans to enhance its data-driven and automated operations by leveraging artificial intelligence (AI). AI will play a crucial role in simplifying customer support, reducing complaint volumes, and increasing the use of self-service platforms. The company aims to streamline processes through automation, enhancing operational efficiency and customer satisfaction.
Deutsche Telekom aims to achieve 50-100 percent growth in Magenta Moments customers by 2027 from 3.2 million at present. Deutsche Telekom is targeting 1.5 billion euros revenue opportunities from additional products and services such as payment services for cell phone insurance services, platforms for payment services and AI solutions for consumers.
#2 Investing in Network Expansion (Fiber and 5G)
The company is focusing on expanding its fiber and 5G networks. By 2027, Deutsche Telekom plans to pass around 17.5 million homes with fiber by adding 2.5 million new homes in Germany. It also aims to increase 5G coverage to 99 percent.
In 2027, the number of new FTTH customers is expected to reach around one million, up from an anticipated 450,000 this year. Deutsche Telekom wants 90 percent of the sites to have download speeds of more than 1 Gbit/s. This expansion will help maintain its leadership in mobile network quality, speed, and reliability, positioning it as a global leader in network performance.
#3 Strengthening Global Economies of Scale
Deutsche Telekom aims to harness its global customer base of 300 million by utilizing globally available services and cloud-based platforms. This strategy focuses on using API-based IT platforms to create scalable solutions that enhance operational efficiency and improve customer experience across markets.
#4 Growth in B2B and Public Sector Markets
The company plans to accelerate revenue and earnings growth in the global B2B segment, especially through T-Systems. Growth drivers include expanding cloud, IoT, security, and AI services, as well as gaining more contracts in the corporate and public sectors. Cross-selling and portfolio expansion are also expected to boost this business area.
#5 Sustainability and ESG Commitment
Deutsche Telekom has ambitious environmental goals, including reducing carbon emissions by 55 percent by 2030 and achieving net-zero emissions by 2040. It also aims to drive digital inclusion, benefiting over 80 million people globally by 2027. The company integrates ESG targets throughout its operations to enhance sustainability and governance practices.
These strategies focus on technological innovation, network leadership, and sustainability while driving efficiency and growth in both consumer and business markets.
Baburajan Kizhakedath
